10:05 am, August 5, 2025
New car registrations slumped by 5.0% in July, but the dip is predicted to be ‘only temporary’ as confusion around the government’s Electric Car Grant is expected to ease over the coming weeks.
That’s the view of the Society of Motor Manufacturers and Traders (SMMT) as it published its latest car registrations data this morning (Aug 5).
Total new car registrations came to 140,154 units, down 5.0% on the same month last year, stalling two months of prior growth.
It was the weakest July since 2022 and 10.8% lower than pre-pandemic July 2019, ‘demonstrating the market’s volatility and wider economic setting’, said the organisation.
Demand from private and fleet buyers fell 3.2% and 6.5% to 51,646 and 85,594 units respectively, while registrations in the smaller business sector climbed 10.4% to 2,914 units.
Registrations of plug-in hybrids (PHEVs) soared by 33.0%, however, while BEVs rose by 9.1%. The SMMT said rise in BEVs was only ‘modest’, with July being the second weakest month for pure-EVs after April, with that month affected by tax changes for BEVs.
Hybrids fell by 10%, while combined petrol and diesel registrations recorded a 14% fall, but the latter still accounted for over half of total registrations.
The Kia Sportage was the month’s best-seller with 4,482 registrations to its name, followed by the Ford Puma (4,409) and the Nissan Juke (3,077).
The Puma remains the year-to-date leader with 30,764 and ahead of the Kia Sportage (27,494) and Nissan Qashqai (24,529).
Commenting on the registrations date, SMMT chief Mike Hawes said: ‘July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty.
‘Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.’
